abrdn Property Income board backs CREI merger over 'uncertain' wind-down

‘No valid like-for-like comparison’

The board of abrdn Property Income (API) has reiterated its unanimous recommendation of the proposed all-share merger with Custodian Property Income REIT (CREI), arguing net asset disposals conducted in a managed wind-down would achieve lower prices than a selective portfolio sale post-merger.

In a regulatory filing today (21 March), the board argued the merger, which has been approved by a majority of CREI shareholders, remains the "best outcome", offering a "premium to the undisturbed share price, an immediate 7.3% uplift in annualised dividends that are fully covered, superior growth prospects and greater scale and liquidity". Despite yesterday's (20 March) announcement revealing the sale of two API properties, the board today argued it expected net disposal values achieved in a managed wind-down would be lower than those available to "carefully selected individual assets",...